Management Activities Flashcards
Management activities
controlling
organising
planning
controlling
manager making sure that the business stays on target to achieve the objectives that they set during the planning stage
steps to controlling
set goals
measure performance regularly
measure/investigate any deviations
take corrective action to stay on target
areas to control
stock control
quality control
credit control
financial control
stock control
making sure the business has the right amount of stock at all times
eg Just In Time
aims to keep min stock and never run out
materials come in and are immediately used
just in time advantages
doesnt hold much stock- lower insurance premium
theft is spotted easier
improves sales/reputation
no money lost on storage costs/deterioration
quality control
keeping high quality of products
involves physical inspections (expensive items), quality circles(small group of volunteer employees), ISO 9000 awards
ISO 9000 awards
awarded for high quality
internationally recognised
constantly prove excellent quality to a group of inspectors
advantages of quality control
increased sales if goods constantly high q
ISO 9000 helps marketing
lower costs as less waste on faulty products
credit control
making sure debtors pay bills on time by:
- setting a max limit on credit given
- vet customers individually (CRR)
- invoice sent containing how much owed and when
- collection procedure for debtors who wont pay
advantages of credit control
ensures business is paid so they can pay their own bills
reduces bad debts/costs
helps choose who to lend credit to
financial control
making sure the business is always profitable and has money to pay bills by:
- set budget for each dept.
- compare CFF to actual cash flow
- ratio analysis of actual vs budgeted
advantages of controlling
makes sure they reach their objectives
reduces costs
improves cash flow
increases sales and profit
organising
arranging all the resources into the most suitable form to achieve objectives
organisational structures
functional
product
geographic
matrix
adv and disadv of functional structure
a -specialisation -accountability -clarity d -isolation -co-ordination
adv and disadv of product structure
a -focus on customer -competition between depts. -lower costs d -duplication -brand cannibalisation (internal competition)
adv and disadv of geographical structure
a -serve local needs better -healthy competition -lower costs d -duplication -conflict
adv and disadv of matrix organisation
a -better co-ordination -better ideas -develops employees d -two bosses -increased costs -slow decision making
span of control
number of employees that report directly to a manager
can be wide of narrow
size of span of control depends upon
managers experience employees experience and ability type of work location of employees outside pressure on manager
chain of command
line of authority and communication that specifies who reports to whom
unity of command: each employee is accountable to one manager
advantages of organisation
solves problems quickly
improves efficiency
helps cope with change
minimises waste
planning
where the manager sets goals for the business and comes up with strategies to achieve these goals
